Public Sector Ag Science Focus:the Canadian perspective

Presentation to: Food & Fuel - The Implications for Agricultural Research Policy

Dr. Brian Freeze, Research Branch Coordinator, Agriculture and Agri-Food Canada

Assistant Deputy Minister Office

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Key Messages

Canadian Agriculture

– At a juncture point of opportunity!

Science & Technology Environment

– Canada needs to focus on innovation and commercialization with government as a catalystand enabler

Agriculture and Agri-Food Canada

– becoming a government S&T Leader in Excellence, Relevance, Accountability andParternships

New Models and Barriers

– Time for more formal integration with univeristies and industry

– but …we must overcome the barriers

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Canadian Agriculture – at a juncture point of opportunity!

$100B contribution to GDP i.e. 8% of GDP

Paradigm shift – moving from commodity agriculture to differentiated, multi-functionalagriculture (producing food, feed, fiber and fuel; biodiversity; environmental services,societal needs – health & wellness, rural development)

Why? – new sciences (genomics, protemomics, etc), rise of renewable energy markets,environmental and food quality & safety concerns

Paradigm shift is changing the commodity based institutions – CWB, CGC, etc.

AGRICULTURE POISED TO BE A SOLUTION TO:

– Health and Wellness

– Environment

– Energy, Biomaterials, Green Chemical, Bio-Products

– Rural Development

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Science & Technology Environment- Canada does well on academics and knowledge creation

Innovation drivers & Knowledge creation

0.000 0.100 0.200 0.300 0.400 0.500

US

France

Switzerland

Canada

Sweden

Finland

Co

un

try

Global Summary Innovation Index (GSII)

Innovation drivers

Knowledge Creation

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Science & Technology Environment- Canada does not do well re: innovation and commercialization

Innovation/Entrepreneurship, Application and IP

0 0.1 0.2 0.3 0.4 0.5

Iceland

France

Isreal

Sweden

Japan

US

Co

un

try

Global Summary Innovation Index (GSII)

Innovation/Entrepreneurship

Application

Intellectual Property

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Science & Technology Environment- Federal S&T Strategy – May 2007

Advocates:

– Principles of Excellence

– Focus on Priorities

– Foster Partnerships

– Enhance Accountability

Policy commitments to:

– Entrepreneurial Advantage (business climateconducive to private sector innovation;strengthen public-private partnerships)

– Knowledge Advantage (resources to priorityareas Canada is good at – e.g. Naturalresources & energy; health & life sciences,information & communications)

– Government as an enabler and catalyst

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Science & Technology Environment- Governments, universities, and the private sector

Canadian R&D expenditures areconcentrated in governments anduniversities

Total spending on agriculturalresearch in Canada is about $700M

Studies show that Canadianagricultural research expendituresreturn a 20:1 benefit to producers

But universities have stopped doingapplied research in the sectorbecause of the priorities of grantingcouncils.

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Agriculture and Agri-Food Canada (AAFC)- a government leader in Excellence, Relevance, Accountability and Partnerships

AAFC Research Branch – regional structure – 20 main sites – that supporteddevelopment of commodity agriculture in Canada

Last 20 years has evolved various partnerships and integration arrangement matchingthe paradigm shift in agriculture

Last 2 years – push toward a new future

– Stakeholder consultations

– New S&I strategy – 7 Focused Priorities – positioning AGRICULTURE AS A SOLUTION TOHEALTH & ENERGY, ENVIRONMENT, RURAL DEVELOPMENT

– Peer Review – establishment of EXCELLENCE

– More formal partnerships – e.g. St Boniface, NRC-PEI

Examples of what we do and what is the Public Role

– Public good science, Public Safety & Security; Regulatory Related Activities

– Fusarium, Collections

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Lacombe

Lethbridge Winnipeg

Harrow

St-Jean

St-HyacintheLennoxville

Ste-Foy Charlottetown

Kentville

St. John’s

AAFC Research Branch

• 600 scientific and research professionals

• 19 research centres, 13 research farms, 20 other sites spread over 30,227 hectares of land

Ottawa

Fredericton

Brandon

Saskatoon

Swift Current

Summerland

AAFC Research Centres

AAFC Research Facilities

AAFC Research Sites

Guelph

London

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AAFC – Last 20 years have developed various integration arrangementsas agriculture has evolved…

AAFC has adopted and adapted

various models

• co-locations

• embedded staff in universities

• joint institutes (joint building,

equipment and staff)

• arrangements with other

government departments

Saskatoon Research Center 200 AAFC staff on Campus of

the Univ of Saskatchewan

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AAFC - Last 2 years – push toward a new future…

The Science consultations in October-November 2005 with stakeholders addressed sciencedirections, research priorities, and the role of government in meeting the changing needs of thesector

– 11 Regional consultations – 300 representatives from producer organizations, processors, provincial andmunicipal governments

– The first Agriculture Science & Innovation Symposium –120 senior officials from producer, processor,and other agri-industry organizations, as well as provincial, university, and other federal departmentrepresentatives

– Bilateral consultations – A series of approximately 40 with key stakeholders in addition to on-lineconsultations for all Canadians through AAFC’s Science Consultations website

The Result: AAFC Science and Innovation Strategy - May 2006

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AAFC – May 2006 – Science & Innovation Strategy - 7 long term national science priorities

AAFC has identified seven national priorities

1. Enhancing human health and wellness through food and nutrition and innovative products

2. Enhancing the quality of food and the safety of the food system

3. Enhancing security and protection of the food supply

4. Enhancing economic benefits for all stakeholders

5. Enhancing environmental performance of the agricultural system

6. Understanding and conserving Canadian bioresources

7. Developing new opportunities for agriculture from bioresources

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AAFC Science & Innovation Strategy - is well aligned with the Canadian S&T Strategy

Focusing on Priorities

Promoting World-Class Excellence – 2006-2007 Peer Review

AAFC reviewed all research projects via an external peer review process aimed at:• assuring the best possible investment of public funds;

• ensuring scientific excellence through competition of ideas; and

• providing international caliber science.

AAFC was the first federal department to conduct a “zero-base” exercise: all scientists wereasked to write new projects aligned with Department priorities.

Of 255 projects:23 were stopped immediately48 will be re-examined in 6 months32 will be re-examined in 18 months

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AAFC – Examples of what we do – the public role- Science in support of regulation, public good and innovation

Public good science – maintenance research re: threats – pests & diseases

– Winter wheat with resistance to Fusarium after the disease threatened the Ontarioindustry

– Characterization, detection and transmission of Plum Pox virus, a disease with thepotential to severely affect the fruit industry in Canada

Public Safety and Security

– Characterization and maintenance of fungal collections

Regulatory-related research activities

– Detection and transmission of potato viruses : a significant barrier to trade

– Carbon cycling and sequestration : to document the carbon offsets provided byagriculture for GHG reduction

– National collections and gene bank : to support CFIA’s regulatory activities

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National Production Constraints

UG 99 BE PREPARED

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New Models and Barriers – AAFC is leading - Time for more formal integration BUT there are Barriers…

Learning from the first Canadian Agriculture Policy Framework (APF)

Innovation –Value – Chain approach

Rebrand the AAFC – MII Program

ABIP Fund model – mobilizing S&T capacity to get new things done -- $145M fund had over $1B in requests!

National Innovation Coordinating Council (NICC)

– Foresighting

– Catalyst and adjustment role

AAFC, Provinces, Universities, Industry – formal clusters

Barriers to integration and new partnership models e.g.:

– Use of G&Cs – Vote 1, Vote 10 monies

– Regulatory Policies

– Intellectual Property policy

– Inter-Departmental working together

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Lessons from Canada Agricultural Policy Framework (APF) – last 5years…….Innovation needs a supporting continuum

Basic

Research

Applied

Research

Prototype

Development

Demonstration

Full Scale

Market Ready

Product Development

Market

Entry

Market

Development

DISCOVERY

PHASE

PRE-ADOPTION / PRE-COMMERCIALIZATION

PHASE

MARKETING

PHASE

INNOVATION CONTINUUM

- A systems approach is needed to stimulate innovation and accelerate the adoption/transformation ofknowledge into market-ready products

- Changes are needed in the regulatory and intellectual property framework

- A patchwork of programming along the continuum, among departments and stakeholders, increasesadministrative burden and impedes effectiveness

- A pre-commercialization bottleneck exists from the lab bench to market entry

- We need to enhance focus on improving the business climate

– We need to start to implement a comprehensive national foresight and innovation coordinationmechanism

– We need to explore alternative delivery models

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Since the APF was originally developedthe federal policy context has shifted…

Advantage Canada

– Focus is on industry competitiveness and economic growth achieved through innovation andproductivity improvement. There is a strong focus on university-business science collaborations. Thenotion that excellence will be obtained through the competition of ideas is presented as a key theme.

Budget 2007

– Continues the messaging from Advantage Canada. Government investment in universities throughGranting Councils is increased only modestly. Granting Councils are essentially the means by whichexcellence through competition of ideas will be achieved. Innovation supported by a focus onentrepreneurship, knowledge development and management and enhancing HQP is a key thrust.

Federal Laboratory Infrastructure Project

– Treasury Board is leading a multi-department review of federal laboratory infrastructure. It is apparentthat significant reinvestment is required and this project is attempting to determine the current conditionof federal laboratory capacity in the context of government science priorities.

Federal S&T Strategy

– Promoting world class excellence

– Focusing on priorities

– Encouraging partnerships

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Rebrand the AAFC Matching Investment Initiative Program..

The Matching Investment Initiative (MII) program is being rejuvenated to enhance its effectivenessand flexibility and improve its delivery. Rebranding and rejuvenating the MII will:

– Enhance innovation capacities across the value chain

– Introduce a new funding formula to cater to a wider variety of industry needs

– Build long-term AAFC-industry relationships

– Simplify agreements will be put in place

– Welcome applications throughout the year

The MII program has been a success. For the period 1994-2002

– MII funded 3000 projects involving 1400 industry groups between 1994 and 2002

– MII leveraged $235 million AAFC direct cash investment with matching industry cash and in-kindinvestment (50:50)

– Net economic benefits from MII funded research have been estimated to be at least $2.2 billion

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AAFC – $145M ABIP Program – Funding new BioEconomy networks

AAFC announced the Agricultural Bioproducts Innovation Program (ABIP).

• ABIP is a $145 million program designed to support research networks and encourage thedevelopment of clusters for the advancement of a sustainable and profitable Canadian bioeconomy.

• It is the first major injection of new research funds in several years.

• As the Science and Innovation Strategy indicated, these new research efforts will put an increasedemphasis on research partnerships that will allow for the creation of the best research teams inCanada.

• Close to 1 Billion $ of funding requests were received.

• Cereals Bio-refineries 16 proposals / Cellulose Bio-refineries – 3 proposals

• APF S&I related - Flax 2015, Novalait, Potato Innovation Network, Pulse, Triticale, Soy 20/20 related projectswere submitted

• Other Commodity Projects – Apples, Eggs

• Micro-organism (Process/Feed stocks) / Fertilizer/Inoculants: 3 proposals

• General Economy/Environment Support: - 5 Proposals; Manure: 1 proposal; Deadstock - SRM: 2 Proposals

• Nutraceuticals: 8 Proposals / Plant Bio-actives: 6 Proposals

• Bio-Fibres: 3 Proposals; Building/Construction: 2 Proposals

• Bio-Oils: 1 proposal ; Green Chemicals: 1 proposal

• Harvest Process: 1 proposal

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For the Next Generation, an integrated policy direction isproposed with four key themes

Foresight Capacity and Coordination:To identify emerging challenges and opportunities forthe long term competitiveness of the sector andmobilize its capacity to address key issues

Enabling Infrastructure: To enable a

foundation that accelerates the flow of new ideas tothe marketplace

Supportive Business Environment: To

promote a climate that fosters innovation

Sector Capacity to Innovate: To foster

strategic planning, entrepreneurial leadership, andknowledge needed to succeed

Com

petitiv

eness

Agri-Innovation System

Innovation

R&D

Proof of Concept

Prod. Development

Market Development

Commercialization

Supportive Business

Environment Enabling

Infrastructure

S&T advancesBarriers to trade

Market receptivity

Consumer

sophistication

Sector Capacity

to Innovate

ForesightCapacity &

Coordination

Integrated programming that

emphasizes coordination along the innovationcontinuum

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These four themes work together to identify opportunities for thesector, to develop these opportunities,…

Foresight Capacity and Coordination – to identify the opportunities

– Establish a National Innovation Coordination Council with a foresight process and associated fora toaddress priority issues

Enabling Infrastructure – to develop the opportunities

– Develop centres of excellence to optimize collective public-private investment in, and mobilize capacityto address, national and regional sector priorities

• Technology and Innovation Partnership centres would combine national and regional strengths and leverage federal-provincialinvestments with academic and private partners. Technology and Innovation Partnership centres would focus on development anddemonstration of applications that can be readily transferred to stakeholders.

• Federal support would catalyze the development of Research Clusters and networks in areas outside of, but complementary to,traditional agricultural activities.

– Bolster capacity to identify and use global science, technology and market intelligence

• Technological scanning for international market, trade and scientific opportunities would be linked to scientific and societal foresight.Develop scanning capacity for innovation, assess the potential value to Canada and develop country strategies that will deepen ourdomestic capacity to exploit knowledge and trade opportunities.

– Enhance pre-commercialization services and associated broker capacity within the sector to assist in thecommercialization of products

– Develop an AAFC innovation-industry liaison function to facilitate connections

• A national network of Technology and Innovation Partnership Centres would leverage discoveries in one area to create productsand services in widely diverse areas beyond where the original discoverer has expertise.

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… to accelerate the necessary investment, and finally, to enablethe sector to act to realize these opportunities

Supportive Business Environment – to accelerate investment in opportunities

– Foster a transparent, timely and cutting-edge science-based regulatory system

• Federally-catalyzed Research Clusters would develop the basis for science-based regulatory processes.

• Technology and Innovation Partnership centres would have the mandate to support SMEs in meeting regulatory requirements.

– Ensure a globally competitive approach to intellectual property management

• Explore new models of IP portfolio management to maximize competitive outcomes.

– Develop a policy framework for advancing the bioeconomy

Sector Capacity to Innovate – to realize the opportunities

– Enhance the capacity of leaders to champion new ideas and develop value chain strategies for marketopportunities

– Ensure the sector has the right skills to support innovation and enable it to compete in the knowledgeeconomy

– Establish an independent forum to foster dialogue with Canadians on emerging technologies

– Position the sector as a “sector of opportunity” to better attract new graduates, experiencedentrepreneurs, and investors to opportunities within the sector

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Time for more formal integration - Alternate delivery models – new partnerships and clusters

Innovation & Technology Platforms Inc.

Research Networks

AAFC Research

Value Chain Roundtables

International S&I Prospecting

Markets and Trade

Foresight & Forums

IP Portfolio

AAFC, Provincial, Industry and Academic Partnership

Broker – Planning Agri-Innovation - Adoption

Industry liaisonCommercialization

Demonstration

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British Colombia• AAFC-Pacific Agri-food

Research Centre

• University of British

Colombia

Alberta• Universities of Alberta,

Calgary & Lethbridge

• Alberta Research Council

• Alberta Agriculture

• Alberta Food Development

Centre

• Olds College

Saskatchewan• University of Saskatchewan

• POS Pilot Plant

• Sask. Food Development Centre

• AAFC-Saskatoon Research

Centre

• NRC-Plant Biotechnology Inst.

• Canadian Light Source

• Innovation Place Bioprocessing

Centre

Manitoba• University of Manitoba & Richardson

Centre for Functional Foods &

Nutraceuticals

• Natl. Centre for Agri-Food Research &

Medicine/St.Boniface

• AAFC - Cereal Research Centre

• Manitoba Food Development Centre

Ontario• AAFC-Southern Crop Protection &

Food Research Centre, Greenhouse &

Processing Crops Research Centre,

Eastern Cereal & Oilseed Research

Centre

• University of Guelph – Advanced

Foods & Material Network, Centre for

Functional Foods, Human Nutraceutical

Research Unit

• National Health Products Technology

Centre, Guelph Food Technology Centre

• University of Western Ontario Centre

for Human Nutrition

• University of Toronto

Quebec• McGill University Phytochemical

Metabolism Group

• Laval University – Inst.

Nutraceuticals & Functional Foods

• AAFC-St.Hyacinthe Research &

Development Centre

Atlantic Provinces• Memorial University

• University of Moncton

Food Research Centre

• University of Prince

Edward Island

• NRC-Institute for Marine

Biosciences

• AAFC Atlantic Food &

Horticulture Research

Centre

• Prince Edward Island Food

Technology Centre

Examples of Canadian Research Clusters ….

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But there are…Barriers to overcome..

Use of Federal Grants and Contributions

– Vote 1 and vote 10 monies available to government researchers

Regulatory policies

Intellectual property policies

Inter-Departmental barriers

Institutional changes

HR aspects - employment groups, benefits, pensions, unions

Provincial and Regional barriers

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Prosperous Farms & Vibrant Rural Communities

New Value-Added and Industrial Bio-Product Opportunities

• Transition from “COMMODITIES” to “DIFFERENTIATED PRODUCTS”

A “Suite” of New Industrial and and Value-Added Crops and Livestock

– Flax oils & biofibres, CLA Beef, Biorefineries – Triticale, Mustards, Canola, Bio-Pharma crops

Rural processing plants linked to the above “suite” of crops will create jobs, revitalize ruralcommunities, and move farmers up the value chain

Targeted, world-leading innovation systems will support the transition from primary relianceon commodities to increased emphasis on the development of first-of-their-kind agri-basedproducts and processes that better meet the needs of global consumers.

Vision – Canadian Agriculture in 20 years

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Summary

Canadian Agriculture

– At a juncture point of opportunity!

Science & Technology Environment

– Canada needs to focus on innovation and commercialization with government as a catalyst and enabler

Agriculture and Agri-Food Canada

– becoming a government S&T Leader in Excellence, Relevance, Accountability and Parternships

New Models and Barriers

– Time for more formal integration with univeristies and industry

– but …we must overcome the barriers